Notes Authorised Ordinary shares $10\%$ R$100$ Non$-$redeemable preference shares $10\%$ R$150$ Debentures Notes: $112350$ million $7,5$ million $-$ Issued $25$ million $2,5$ million $2,5$ million The shares, which were originally issued at R$10$ per share, now have a net asset value per share of R$18$ and the current ex div market price is R$27$ per share. The current earnings yield is $12\%$ and a constant dividend payout ratio of one third $(1/3)$ is maintained $($and has been maintained since the company listed on $14$ December $2010).$ The earnings per share was $220,5$ cents five years ago and it has been growing at a constant rate ever since. No new shares were issued over the past five years. The constant growth in earnings and dividends is expected to continue into the foreseeable future. It is expected that all the earnings for the coming year $($after dividends$)$ will be available for the financing of new projects. However, if new capital needs to be raised with an issue of shares, a rights issue at R$25$ per share will be used and transaction costs of approximately $4\%$ will be incurred to effect the rights issue. These transaction costs are not tax$-$deductible. Additional information: $$ The current capital structure based on market values is considered as optimal. $$ The company tax rate is $28\%.$ Calculate Mv and Cost of Equity.